Autoblog

Those of us outside of Ford have little idea about what Ford is really planning to do with its remaining PAG brands, Jaguar, Land Rover, and Volvo. If nothing else, it does seems clear that Ford wants to get rid of Jaguar and Land Rover at something above fire sale prices, and it would like to keep Volvo if it can find the money and concentration to run it properly. When it comes to Jag and Rover, the surprising revelation is that even the companies bidding for the British marques have little idea about what they're getting.

Names of potential bidders continue to bob up, the latest being American equity firms TPG and Ripplewood Holdings. But Ford hasn't given any of the bidders a complete financial picture of Jaguar and Land Rover, nor have any of the bidders even been allowed to visit the factories or speak to senior management. Potential buyers have also been told not to bid if they plan on closing factories or moving production out of Britain. We can't help but think these are odd constraints to place on such a potentially large transaction -- up to $8 billion, according to some estimates. Bidders are being asked to stump up for two companies they know little about, including one that has lost a fortune, and that they cannot change them in drastic ways to render them profitable.

Ford is ostensibly worried about damage to its reputation if it relinquishes the two hallowed names to slash-and-burn overseers. Ford is the number one selling brand in Britain, and doesn't want residual anger over its treatment of Jag and Land Rover to affect its position. If this sale is a 15-round fight, we're only in Round 3 -- and it look like it's going to be a long, fascinating match all the way to the end.

[Source: Detroit News]

After months of speculation, the Chrysler sale happened without too much fanfare on Monday morning, as Cerberus came out as the top bidder, and several potential investors came away empty-handed. One of the few groups vying for control of Chrysler was its own employees, and Automotive News is reporting that those UAW members feel they never got a real chance.

Members of Toledo's Jeep plant tried to get together a bid for the beleaguered Chrysler group, but they felt as though the folks in Stuttgart and Auburn Hills stalled in order to keep the workers at bay. The members were also angered by Ron Gettlefinger's comments that the sale to Cerberus was "in the best interest of the membership" only a few weeks after stating that the UAW was opposed to any sale to a private equity group. President of the Chrysler Employee Buyout Committee (CEBC) Michele Mauder also criticized Daimler for basically paying $650 million to get out from under Chrysler's liabilities. CEBC claims that they aren't as upset by the fact that they didn't win the right to purchase Chrysler as they were that they never got a fair chance to bid.

[Source: Automotive News - sub. req'd]